PSECU Founder’s Rewards (Pennsylvania State Employees Credit Union) is a basic cash back credit card for everyday spending. It can earn 2% without any annual fees or foreign transaction fees, which is slightly better than competing cards. The only drawback is that it requires credit union membership, and a free checking account with direct deposit enabled.
FEATURES AT A GLANCE
- No annual fee
- No foreign transaction fees
- 2% cash back on everything (with eligible direct deposits, otherwise 1.5% cash back)
SIGN UP BONUS
As of November 2021, you can earn $300 after spending $900 within 90 days. This is an attractive bonus with a low spending requirement, and the best bonus of any 2% card. It’s a quick 35.3% ROI once everything is set up.
The free checking account usually has a sign-up bonus too. It isn’t required to have the checking account to apply for the Founder’s card, but it IS required later on, to earn 2% cash back. As of July 2021, you can earn a $250 welcome bonus by setting up a direct deposit of $200+ per month for 6+ months.
We haven’t verified yet if the credit card and checking account bonuses can be stacked at the same time. If so, that’s a cool $550 cash bonus. A 63% return is hard to pass up.
OTHER BENEFITS OF THE FOUNDER’S REWARDS CARD
- Visa Signature benefits (if eligible)
- “Credit limits up to $30,000, if qualified”
- No balance transfer or cash advance fees
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
To earn 2% cash back rewards, a PSECU checking account is required, along with “qualifying monthly direct deposit(s) of at least $500.” You can’t close your account within your first year of membership. Additionally, gift cards may not be eligible for credit card rewards, according to the terms and conditions.
The main hurdle for a PSECU account is qualifying for credit union membership. Although it’s only supposed to be for Pennsylvania residents, the bank offers an easy option: “If you don’t meet one of the above criteria, you can join the Pennsylvania Recreation and Park Society (PRPS) through PSECU to become eligible for PSECU membership. PRPS Friend membership is a one-time fee of $20, but PSECU will cover $10 when you open your account online. We will also take care of your PRPS membership registration as part of your PSECU membership application. You do not need to renew your PRPS membership to maintain your PSECU membership.” Anyone in the United States can become a member of PSECU for $10.
MAXIMIZING REWARDS WITH THE FOUNDER’S REWARDS CARD
The card earns cash back rewards in a simple and straightforward way. There isn’t anything special to do that would maximize rewards. You earn 2% back on all purchases, and that’s it.
ALTERNATIVES TO THE FOUNDER’S REWARDS
Any general-use card earning more than 2% cash back will be better. However, this is a very short list. Only the Alliant Cashback Visa Signature is strictly better at 2.5%. But it doesn’t have a sign-up bonus, and details are subject to change. For the first year only, the US Alliance Financial Visa Signature and Discover It Miles earn 3% cash back on everything.
Other options:
- Citi Double Cash earns 2.2% when paired with the Citi Rewards+ (but Double Cash has foreign transaction fees and zero sign-up bonus at this time)
- Chase Freedom Unlimited (CFU) when combined with the Chase Sapphire Reserve (CSR) for earning 2.25% or more on everything (up to 3% or 4.5% cash back with Hyatt transfer redemptions)
- Bank of America Unlimited Cash Rewards or Travel Rewards or Premium Rewards card, paired with Platinum or Platinum Honors status for 2.25% or 2.62% on everything
CONCLUSION
The Founder’s card is a slight improvement over common 2% cards like Fidelity Rewards and Wells Fargo Active Cash. It doesn’t have foreign transaction fees and the sign-up bonus is better. It’s also easier to get than good cards like Penfed Power Rewards and SDFCU Premium Cash+. Some 2% cards (especially Fidelity and Penfed) offer occasional bonus earnings, but if you’re not feeling lucky, PSECU is the way to go. It has zero fees, high sign-up bonuses, and low barriers to entry.
We rate the Founder’s Rewards card 4 out of 5 stars. ⭐⭐⭐⭐
Note: This review was last updated in November 2021. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to take advantage of our personalized consulting services!